$1 Club, page-24822

@Ryzie Given their growth rates and the recent investment in IDSB (i.e. drawing down $20m) I'd think some warehouse funding facility should be coming up soon, maybe another couple of months. I've been thinking more about the IDSB move and really trying to think of bigger picture strategic reasons for it - it just seemed so out of left field that there must be much substantial reasons to undertake such a move at this time. Just speculating as it could be for something completely new, but perhaps:
- Potential to utilise the AG licence for all customers, or maybe at least expand the cohort beyond civil servants to other industries. I haven't looked into the IDPay product yet, but it seems there is potential for this. If the Malaysian Govt. maintains only 2 licences, that could be a very attractive feature to have.
- Related to the above, perhaps Atome or Hoolah were looking into this licence also. Just speculation, but for context I consider them the two primary competitors. Again if limited to 2 licences, keeping it out of competitor hands is advantageous.
- Leveraging links with major banks for better terms for warehouse facility - perhaps given the nascent BNPL scene and economic damage caused, banks may be uncomfortable with BNPL lending and thus offer less than ideal terms. Even SZL and Zip had pretty crappy terms on their warehouse facilities early on from memory. Could secure larger facilities at much better rates, helping with unit economics.
- IOU see potential to significantly grow the IDSB business alongside myIOU - at 37,000 customers it doesn't sound like a huge operation, but I could be wrong. Their stake values IDSB at approx. $AUD100m - perhaps they see potential to 10x that investment also, adding big gains to the IOU balance sheet and profit line.

Anyway just a few ideas that are likely all wrong given my lack of familiarity with Malaysian business and government. But for me I keep coming back to why they bought into the company when much of what they said could have presumably been achieved with partnership agreement. There has to be more substantial reasons than simply cross-promotion and it returns some profits.